Sensys Gatso, through its 40% joint venture share in NTMEL, signs an 11 year TRaaS contract with the Government of Ghana estimated at SEK 800 million in revenues
Sensys Gatso Group, a global leader in traffic safety solutions, through its 40% joint venture share in Nationwide Traffic Management & Enforcement Ltd (NTMEL), has been awarded an 11 year contract by the Government of Ghana to Design, Build, Finance, Operate and Maintain a national road safety program. Revenue generation is expected to start in the second half of 2024. Program transfer is scheduled for the end of 2033. Total contract value for the joint venture over the term of the contract is estimated at SEK 800 million.
In line with Ghana’s National PPP Policy, the contract has gone through an extensive approval process. Over the last couple of years, multiple government departments and stakeholders have established the basis for the implementation of an efficient traffic enforcement program, ensuring wide acceptance within the government as well as with the general public.
The contract starts with an implementation phase during which the organisation is built, the backoffice, to process violations, is implemented and interfaces with external systems and workflows are tested. The actual enforcement will start in the second year with a limited number of speed guns, fixed and mobile traffic enforcement cameras. Processes and workflows will be optimised before larger numbers of enforcement devices are deployed. Gradual expansion of the installed base and investments in the organisation will continue until the 5th year. The first revenues are expected in the second half of 2024 and the joint venture is projected to create over 100 jobs. NTMEL will operate the program for 11 years till the end of 2033.
Sensys Gatso is a shareholder in NTMEL, a company based in Accra - Ghana. NTMEL will assist the Government of Ghana to implement a national road safety program using worldwide proven technologies and methods. Sensys Gatso will provide both management and technology throughout the term of the contract. Its shareholding in the joint venture gives the right to a 40% profit share.
Edmar van der Weijden, Managing Director of Sensys Gatso International: “We are honoured to have the opportunity to make a life-saving difference to road users in Ghana. The program will be implemented in close cooperation with our public sector partners including the Ministry of Interior, Ghana Police Service, National Road Safety Authority, Driver and Vehicle Licensing Authority, Ministry of Roads and Highways, Ministry of Finance and the National Insurance Commission. With the introduction of this program there is no doubt that the Government of Ghana, in its quest for safer roads, will achieve encouraging results soon.”
Along with the strong economic growth over the last 2 decades, road casualties in Ghana have surged too. Last year 2,924 people lost their lives in traffic, an increase of nearly 13% compared to 2020. Another 15,680 people were injured in the same period. And this year is no exception, road traffic crashes continue causing havoc to many people’s lives on a daily basis. Apart from the personal tragedies, the associated costs to society are estimated at 1.6% of Ghana’s GDP annually.
Public acceptance is an essential element for a successful and sustainable road traffic enforcement program. Sensys Gatso’s unique experience in Vision Zero, the successful road safety policy first originated in Sweden in 1997, will assist the Government of Ghana in the execution of a public awareness campaign.
Ivo Mönnink, CEO of the Sensys Gatso Group: “For many years Sensys Gatso has been offering complete TRaffic enforcement as a Service (TraaS) programs to its clients in the USA, today spanning 11 states. It is now making this expertise and in-house developed technologies available to new markets including Africa, Latin America and Australia. We are proud to deliver the most complete TRaaS offering in Ghana, from design, financing, installing and managing the necessary technology to operating the essential business processes that form a road safety enforcement program. With this 11 year contract Sensys Gatso is delivering on its promise to contribute to saving lives in traffic and generate sustainable recurring revenue growth.”
This information is information that Sensys Gatso Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16.20 on 23 December.
For further information:
Ivo Mönnink, CEO
Sensys Gatso Group AB
Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners. Sensys Gatso Group has subsidiaries in Australia, Costa Rica, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates and has 263 employees. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm.
For further information, visit www.sensysgatso.com